IMF Working Papers

Italy: Quantifying the Benefits of a Comprehensive Reform Package

By Michal Andrle, Alvar Kangur, Mehdi Raissi

March 16, 2018

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Michal Andrle, Alvar Kangur, and Mehdi Raissi. Italy: Quantifying the Benefits of a Comprehensive Reform Package, (USA: International Monetary Fund, 2018) accessed September 18, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper seeks to quantify the net benefits of a comprehensive reform package aimed at addressing Italy’s inter-related challenges. Specifically, it simulates the growth and competitiveness effects of a package of fiscal, financial, wage bargaining, and other structural reforms. Credible implementation of such a package yields substantial mediumterm dividends at negligible near-term growth costs. Real GDP growth is estimated to be substantially higher over the medium term, while the real effective exchange rate depreciates notably.

Subject: Financial institutions, Labor, Macrostructural analysis, Nonperforming loans, Production, Structural reforms, Total factor productivity, Wage bargaining

Keywords: Banking sector, Competitiveness, Competitiveness gain, DSGE models, Fiscal policy, GDP, GIMF simulation, Global, Growth, IMF's Global Integrated Monetary and Fiscal, Italy, Labor market reforms, Nonperforming loans, NPL ratio, OECD estimate, Product market reforms, Real GDP, Reform, Structural reforms, Total factor productivity, Wage bargaining, WP

Publication Details

  • Pages:

    17

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2018/060

  • Stock No:

    WPIEA2018060

  • ISBN:

    9781484347614

  • ISSN:

    1018-5941